11 Different Types of Leaves In India

Managing an organization’s leave policies isn’t just about tracking time off—it’s about creating a system that fosters trust, compliance, and employee well-being. HR teams must go beyond basic knowledge of paid and public holidays to ensure they align with evolving labor laws and workforce expectations.

With diverse labor regulations across countries and industries, employees in India are entitled to various types of leaves, from statutory benefits to company-specific perks. For HR teams, navigating these policies can be complex, but a well-structured leave policy can enhance employee satisfaction and retention.

"Leave isn’t just time off—it’s an opportunity for businesses to build trust and retain top talent."

Fast-growing companies are now offering additional leave benefits to support employee wellness, acknowledging that flexibility in time off contributes to productivity and engagement.In this blog, we’ll break down the 11 most common types of leaves in India, helping you understand their purpose, eligibility, and how they contribute to a well-structured leave policy. Whether you're an employer looking to enhance compliance or an employee seeking clarity on your entitlements, this blog will provide the insights you need.

11 Types of Leave Available to Employees in Indian Companies

1. Privilege Leave (PL) / Earned Leave (EL) / Annual Leave (AL)
2.  Casual Leave (CL)
3.  Sick Leave (SL)
4. Maternity Leave (ML)
5. Marriage Leave
6. Paternity Leave
7. Bereavement Leave
8. Compensatory Off (comp-off)
9. Loss Of Pay Leave (LOP/LWP)
10. State-specific different types of leaves in India
11. Sabbatical Leave

Let’s break down the various types of leave that an employer can offer. 

1. Privilege Leave (PL) / Earned Leave (EL) / Annual Leave (AL)

This leave type is commonly known as Earned leave; this works on the model of getting paid for the days you have worked. Few organizations also call it Vacation leave (VL),Annual leave (AL), or Privilege leave (PL). This leave allows employees to recharge and take long vacations to celebrate year-ends, festivals, or any personal celebration. Privilege leave is critical for employee well-being and organizational productivity; it helps prevent burnout and stress-related work absences.

Privilege leave policy and framework are similar but governed by different laws across countries:

Employees are encouraged to plan this leave well in advance, as extended absences can disrupt workflow and require colleagues to step in. Notifying the manager ahead of time ensures a smooth transition and helps maintain productivity.
As per thelabor law, the key components required to avail privilege leaves are:

1. Eligibility: Typically requires completion of probation or 240 days to one year of service
2. Accumulation: Maximum limits (e.g., 30 days in India)
3. Encashment: Required at resignation/retirement, with limits
4. Availment: Requires prior notice (unlike sick/casual leave)
5. Minimum entitlement: Varies by country (15 days in India, 4 weeks in UK/Australia, 20-30 days in EU)

The best part of the earned leave is if it’s not consumed,  it can be carried forward or encashed through the process of leave encashment.

2. Casual Leave (CL)

CL is known as casual leave. Often, employees confuse it with earned leave. Casual Leave (CL) serves as a critical short-term absence option that helps employees manage unexpected personal matters without losing pay.
Unlike Privilege or Earned Leave, which is designed for planned, longer absences, CL addresses immediate needs that arise with little or no notice
Casual leave CL solves the purpose of personal emergencies. Employers generally never ask for the reason behind these leaves as they are officially used for personal matters.
The reasons behind Casual Leave (CL) can be for running an errand for a plumber/technician/carpenter visit or for a family member's illness. It can be for possible small reasons, which makes your everyday function back at home.
Most companies allow 2-3 consecutive days of casual leave to ensure it is consumed only for short-term purposes without affecting business continuity. While some companies might offer 8-12 days of casual leave, and the terms of use (like how many consecutive days can
be taken) also vary by organization.
Leave policies vary based on state-specific Shops and Establishments Acts, industry regulations, and company policies.

3. Sick Leave (SL)

Also known as medical leave, sick leave is granted to employees in case of health-related concerns, including unexpected illnesses or accidents. It allows employees to prioritize their well-being without compromising their earnings.

This leave can be availed on short notice when an employee is unwell. To ensure fair usage, some organizations may require a medical certificate for extended sick leave.

With growing awareness of mental well-being, many organizations also acknowledge the need for a ‘mental health day’, allowing employees to take a break when they feel mentally exhausted, even if they are physically well.
In India, employees are typically entitled to 12 paid sick leave days annually. Unused sick leave cannot be carried over to the next year, nor can it be cashed out upon termination or resignation. The exact policies may vary depending on the employer or industry.

4. Maternity Leave (ML)

Irrespective of the sector, whether it’s a private or public sector (government), the Maternity leave grants female employeesmaternity leave of 26 weeks (8 weeks before the due delivery and 18 weeks after the due delivery date).As per the Maternity Benefit Amendment Act (2017), women are entitled to  work-from-home options post-leave, if mutually agreed. Additionally, grants 12 weeks of leave for adoptive, commissioning, or surrogate mothers. Also, you’d get creche facilities for organizations with 50 or more employees. Plus, to be eligible for this leave, female employees who have worked for at least 80 days in the 12 months before the expected delivery date. Applies to businesses with 10 or more employees. Self-employed or those in organizations with fewer than 10 employees are not eligible.

5. Marriage Leave

Marriage leave is a special provision that allows employees to take time off for their wedding celebrations. While not widely known, many organizations offer this leave, often deducting it from regular paid leave balances.

Unlike India, where marriage leave is not legally mandated, countries like China and Vietnam grant it as a legal entitlement, ranging from 3 to 30 days, depending on the province.

In India, the number of marriage leave days varies by organization. Most companies offer between 1 to 15 days, with 3 days being the most common practice. Some organizations require valid proof, such as a marriage certificate or wedding invitation,for approval.

6. Paternity Leave

 A relatively new addition to workplace policies, Paternity Leave allows new fathers to take time off to bond with their newborn and support their partner during and after childbirth.
In India, while there's no statutory requirement for private companies, many organizations now offer this benefit to promote gender-equal parenting.
Government sector employees are entitled to 15 days of paternity leave under the Central Civil Services Rules. In the private sector, the duration typically ranges from 5-30 days, depending on the company's policy. Some progressive organizations like Zomato offer up to 26 weeks of paternity leave.
This leave can usually be taken within six months of childbirth or adoption, and some companies allow splitting it into multiple periods. Documentation requirements usually include birth certificate, adoption papers, or medical records.
Unlike Maternity Leave, Paternity Leave is still evolving in India, with companies increasingly recognizing its importance in promoting work-life balance and shared parenting responsibilities. Some multinational companies even extend this benefit to same-sex partners and adoptive fathers, making it more inclusive.

7. Bereavement Leave

Bereavement leave is granted to employees following the loss of a loved one, allowing them time to grieve, participate in rituals, and support their family during difficult times.

Typically, companies offer 5 to 12 days, though some may allow extensions for caregiving or emotional recovery. Also known as compassionate leave, it acknowledges the need for both mental and emotional well-being during such periods.

8. Compensatory Off (comp-off)

Compensatory leave, or ‘Comp-off,’ is granted to employees as compensation for working on a weekend or a public holiday due to business priorities. If an employee is required to work on an off day—such as a Sunday or a government holiday—for an urgent project or event, they can take a compensatory day off at a later date.

For instance, if an examination is scheduled on a Sunday, the invigilator working on their designated day off can avail compensatory leave on a future working day. Some organizations also allow employees to accumulate these leaves to take an extended break.

It’s important to note that comp-off leave is granted only on a case-by-case basis and must align with business needs. Additionally, most companies require employees to utilize these leaves within 4 to 8 weeks, making it a valuable but time-sensitive benefit.

9. Loss Of Pay Leave (LOP/LWP)

Loss of Pay (LOP) leave is an unpaid leave taken when an employee has exhausted their available leave balance but is unable to resume work due to unavoidable reasons. In such cases, the employee opts for LOP, which results in a salary deduction for the days absent.

If an employee informs their employer about their absence in advance, it is still considered LOP. However, in cases where an employee fails to report to work without prior notice—such as in academic settings where attendance is not actively monitored—it may also be treated as Leave Without Pay (LWP) or an unapproved absence.

Unlike other leave types, LOP does not come with a leave balance. If the leave is not officially approved, the corresponding number of days is directly deducted from the employee's salary during payroll processing.

10. State-specific different types of leaves in India

Different states in India have unique leave policies influenced by local customs, festivals, and traditions. For example, Tamil Nadu and Kerala grant special leave for harvest festivals like Pongal and Onam, respectively. Similarly, West Bengal provides additional leave during Durga Puja, while Maharashtra recognizes Ganesh Chaturthi as a significant holiday.

These state-specific leaves are usually mandatory and paid, varying between one to five days, depending on the festival’s importance. Employers with a multi-state presence must maintain separate leave calendars to ensure compliance with regional regulations and accommodate diverse cultural needs.

11. Sabbatical Leave

 A sabbatical is an extended break from work, typically lasting anywhere from 3 months to a year. This type of leave is usually unpaid but allows employees to retain their position in the organization.
It's commonly taken for personal growth, higher education, research, to pursue passion projects, or to recover from someone's loss or to take care of mental health. While not a standard offering in all companies, sabbaticals are gaining popularity, especially in IT, academia, and research-oriented organizations. The eligibility often requires a minimum service period of 5-7 years with the organization.
During sabbatical, employees might engage in activities like pursuing a degree, writing a book, traveling, or even working on personal development.
Unlike regular leaves, sabbaticals need extensive planning and prior approval, often requiring a detailed plan of how the leave will benefit both the employee and the organization upon return.

Wrapping Up

Progressive companies like Microsoft, Netflix, and other tech giants are redefining workplace culture by introducing diverse paid leave options to support the well-being of the modern Gen Z workforce. Embracing a people-first approach is not just a trend—it’s essential for fostering a thriving work environment.
Keeping diversity at the center, software like Darwinbox can handle end-to-end leave management so that the HR systems can have clear visibility of the leave policy and all the leave type details. Schedule a demo now!

FAQs

Can an employer deny an employee’s earned leave (Privilege Leave/Annual Leave)?

Yes, employers have the right to decline an earned leave request based on business needs. However, if the employee is eligible and follows the company’s notice period for applying, it is usually granted. Some companies allow leave encashment if employees cannot take their leave due to work commitments.

Is sick leave in India paid, and can it be carried forward to the next year?

Sick leave (SL) is generally paid, with most Indian companies offering 12 days per year. However, unused sick leave typically cannot be carried forward or encashed. Policies may vary depending on the organization and state-specific labor laws.

Do Indian labor laws mandate paternity leave for private sector employees?

No, there is no legal requirement for paternity leave in the private sector. However, many progressive companies offer 5 to 30 days of paternity leave to support new fathers. Government employees, on the other hand, are entitled to 15 days under the Central Civil Services Rules.

What is the difference between loss of pay (LOP) leave and unpaid leave?

Both LOP and unpaid leave result in a salary deduction, but LOP is typically when an employee has exhausted their leave balance, whereas unpaid leave is often pre-approved and planned. In some cases, frequent unapproved LOP can impact performance reviews and promotions.

Can casual leave (CL) be clubbed with earned leave (EL) or sick leave (SL)?

This depends on company policy. Some organizations allow casual leave to be combined with earned leave but not with sick leave. Others may restrict casual leave usage to standalone short-term absences only.

How many days of bereavement leave do Indian companies typically offer?

There is no legal mandate for bereavement leave in India, but most companies offer 5 to 12 days, depending on their policy. Some organizations allow additional leave for immediate family members' deaths, subject to approval.

Are sabbatical leaves paid or unpaid in India?

Sabbatical leave is generally unpaid, but some companies, particularly in IT, academia, and research fields, offer paid sabbaticals for skill development or further education. The eligibility criteria usually require employees to have worked for a minimum of 5-7 years.